One more way to make money with Linux is by offering paid professional support services for free open-source software. So for instance, a company uses Linux to develop a new piece of software that fulfills a huge market need. They open the software is up for free distribution, download, and use.
Linux companies like Red. Hat and Canonical, the company behind the incredibly popular Ubuntu Linux distro, also make much of their money from professional support services as well. If you think about it, software used to be a one-time sale (with some upgrades), but professional services are an ongoing annuity.
Many developers earn their monthly income creating Linux code. They work for companies that, for one reason or another, have determined that supporting the Linux ecosystem is good for business. Some are “open source” companies. Making free software is a key part of what they do.
One way to think about this is although this mode of support is relatively uncommon, you don’t necessarily have to be an open source superstar to secure this type of funding; many Linux kernel developers are partially or wholly funded by companies like Red Hat. Paid for specific features or extensions.
One of the next things we wondered was; how do open source companies make money?
Another way open source companies make their money is with add-ons. One of the most successful of these is Woo, and commerce. At the time it was acquired by Automattic in 2015, it powered over 25 percent of all ecommerce stores.
Why do Linux companies work on Linux?
They work for companies that, for one reason or another, have determined that supporting the Linux ecosystem is good for business. Some are “open source” companies. Making free software is a key part of what they do. Red Hat is the largest example of this. Canonical, who makes Ubuntu, is another prominent one.
Why is Linux free for commercial use?
The Linux source code is freely available which means that development companies can use the code to create new distribution packages and versions of Linux. They can then license these as their own products to sell and make money. Examples of these distribution versions include Debian, Fedora, Ubuntu, and Red Hat.
What is Linux’s net worth?
With the rapid growth of the market along with the income from the hardware components, predictions were that Linux’s worth would exceed $35.7 billion back in 2008. However, a Fortune Business Insights report article has decreased this prediction and declared the worth closer to $3.89 billion in 2019.